May 2015 Table of contents Executive summary 1 Introduction 1.1 Background to the study 1.2 Terms of reference 1.3 Methodology 2 UK tourism trends 2.1 UK tourism volume and value 2.2 Staycation 2.3 Seaside tourism context 2.4 South Downs National Park and rural tourism trends 2.5 Meetings, incentives, conferences and events (MICE) tourism trends 2.6 Coaching tourism trends 2.7 Emerging tourism trends 3 UK accommodation sector trends ! 3.1 Independent versus branded properties ! 3.3 Major brand representation in seaside resorts 3.4 Accommodation performance trends 3.5 Development and investment trends 4 Overview of Eastbourne 4.1 Eastbourne economy 4.2 Key development projects ! 4.3 Tourism in Eastbourne " 4.4 Meetings, conferences, exhibitions and events in Eastbourne 5 Tourist accommodation in Eastbourne 5.1 Total tourist accommodation supply 5.2 Hotel supply # 5.3 Hotel supply by location ! 5.4 Changes to hotel supply 5.5 Guesthouse and B&B supply 5.6 Guesthouse and B&B supply by location # 5.7 Changes to guesthouse and B&B supply " 5.8 Self-catering and holiday lets supply 5.9 Self-catering and holiday lets supply by location 6 Eastbourne tourist accommodation performance 6.1 Online survey response 6.2 Annual occupancy 6.3 Average achieved rate 6.4 Number of nights business is turned away # 6.5 Weekly demand pattern # 6.6 Market mix $ 6.7 Future outlook $ 7 Assessment of developer and investor interest 8 Assessment of future market potential #" 9 Planning policy framework review # 9.1 Planning policy framework overview # 9.2 Key planning issues # 9.3 Tourism planning best practice examples $" 9.4 Tourist accommodation planning applications $ 9.5 TAA and SPG options analysis $# 10 Key issues and recommendations 11 Planning policy recommendations # Executive summary Introduction In July 2014, Eastbourne Borough Council (EBC) commissioned Acorn Tourism Consulting Ltd to prepare a Tourist Accommodation Study. The main purpose of the Tourist Accommodation Study is to inform the emerging Seafront Local Plan. From a tourist accommodation perspective the seafront is where the vast majority of the current stock is concentrated. The aim of the study is to provide the evidence base to assist EBC in assessing current and future demand for tourist accommodation in the town as well as review the current retention policy in order to manage any changes to supply. Ultimately, the study will be used to inform future planning decisions for new hotel and other visitor accommodation as well as change of use applications. In order to prepare the Tourist Accommodation Study we reviewed and analysed the following topics identified in the brief: • Current and future policy and planning framework • Current and future supply and demand for hotel and visitor accommodation • Future market prospects and accommodation retention policy • Examples of and recommended best practice to safeguard visitor accommodation • Recommendations regarding marketing and promotional activity in order to attract events to and investment in Eastbourne. The research and analysis was in turn used to inform our strategic recommendations with regards to the future planning policy framework and will form an important part of the evidence base. There were four strands of research, relating to the study: 1. Desk research 2. Face-to-face and telephone interviews with developers/investors, accommodation owners/operators and property agents 3. Meetings with EBC, Eastbourne Hospitality Association (EHA) and other key stakeholders 4. Online survey, telephone and face-to-face interviews with a selection of accommodation providers in Eastbourne. UK tourism trends The tourism industry in the UK accounts for over £127bn per annum equating to around 9% of total GDP. 2013 was a record year for inbound tourism to the UK with 32.9m international visitors spending £21bn. However, since 2008 there has been a notable change in holiday behaviour amongst domestic tourists, whether switching, cutting back, or simply taking different types of breaks. It is unlikely that this change in behaviour will simply be reversed in line with the economy improving. Even though domestic tourism declined in 2014 compared with 2012/13, the outlook for the ‘staycation’ remains positive assuming that destinations and, in particular, accommodation providers are able to continue to offer an appealing high-quality product at the right price point. This is likely to involve adopting an innovative approach and adapting the product in order to embrace changing travel behaviours. Consumers are increasingly enjoying taking multiple trips throughout the year rather than waiting for a single ‘big’ holiday suggesting a more permanent change in behaviours. In order words, for most visitors, a domestic break is more than a second-choice option. However, this also means that trips have become shorter with a 17% increase in the number of one to three night breaks. Furthermore, the average domestic holiday-taker has become older and more affluent. After increasing by a quarter in 2009, the volume of holiday trips to the seaside has fallen back to pre-recession levels. This runs contrary to the volume of trips overall which has remained strong since its initial uplift in 2009. Seaside resorts tend to have assets that are under-utilised with potential to be updated and spearhead further private sector development. Gaining a better understanding of contemporary visitor perceptions and expectations should help inform future development. There is currently a renewed interest in seaside resorts generated by projects such as pier refurbishments and major cultural investments like the Towner Gallery in Eastbourne and the Turner Contemporary in Margate. Critical to the future success of seaside tourism in the UK will be the ability to manage the quality and quantity of visitor accommodation stock in order to remain attractive and appeal to a wider range of potential visitors. This in turn will enable seaside resorts to benefit from the growing international and domestic tourism demand in the UK. UK accommodation sector trends According to AM:PM Hotel data and intelligence there were 567,597 hotel rooms in the UK and Ireland as of 30 September 2014, representing a 1% increase on the previous year. Within this context Eastbourne is currently ranked 26th in the UK with an estimated 53 hotels and 3,047 available rooms. This figure is slightly higher than our estimated supply figure as a couple of the hotels included are outside the EBC boundary and some larger guesthouses are included in the figure also. Within this context Eastbourne has the second highest proportion of independent supply in a large seaside resort after Blackpool. Traditional seaside resorts such as Blackpool, Torquay and Eastbourne which tend to be heavily reliant on leisure demand have a much higher concentration of hotel supply in the two- to three-star segment than those who have more diversified economies such as Brighton, Bournemouth and Southampton. AM:PM hotel data and intelligence recently launched a database of hotel closures. The database incorporates details of more than 6,000 hotel closures, the majority of which were independent and two/three star at the time of closure. Furthermore, hotels affected by closure tend to be below 45 rooms whereas new-build properties typically have 65+ rooms in order to achieve good operational economies of scale. Much has been written in recent years about the state and condition of many independent properties and it is likely that those who fail to meet modern standards will have to change in order to remain competitive. This is a trend that potentially has a significant implication for Eastbourne where almost two-thirds of total hotel supply remains independently owned and operated and is two- or three-star, or below. Unlike other seaside resorts Eastbourne has not seen much interest from the major brands with the exception of Premier Inn and Travelodge which have a small representation in the town. This is in contrast to Brighton and Bournemouth which have excelled at presenting themselves as attractive destinations for investment with a strong pipeline of major regeneration and development projects which in turn has attracted hotel sector investors including brands such as IHG’s Indigo, Hilton and Hampton by Hilton. Overview of Eastbourne Eastbourne is a well-established seaside resort and tourist destination in the South East hosting a range of high-profile annual events, especially the AEGON International Tennis and Airbourne attract a large amount of visitors. Tourism is an important economic driver attracting circa 2.04m visitor nights in 2013 generating an estimated £261.3m in direct expenditure and contributing 19.5% of all jobs. On average Eastbourne hosts between 18 and 20 conferences per annum. The majority of these are repeat business with fairly long lead times. There is a natural ceiling to the number of conferences that the town can host which is linked to seasonality. The average conference size was 643 delegates in 2013. However, conferences range in size from around 100 to some 2000 delegates. A visitor study compiled in 2012 confirmed that Eastbourne needs to develop a strong product offer based on the gaps in the market supported by a strong brand identity. At the moment it would appear that there is a disconnect between Eastbourne’s future vision and aspirations and the perception of the destination in the market place. One of the constraints facing Conference Eastbourne in terms of attracting more corporate residential conference demand is the inability to accommodate all delegates in a single hotel as well as the lack of branded properties. The majority of corporates do not book two- or three-star independent hotels. A number of key development projects are currently in the pipeline or in the process of being implemented. These in turn should enable Eastbourne to enhance its destination competitiveness and attract a greater proportion of the anticipated growth in domestic and inbound tourism to the UK.